Iberdrola SA, the largest producer of environmentally friendly energy, intends to attract partners for the construction of data processing centers (data centers). This is reported in a press release from Iberdrola.
Iberdrola, which will connect the centers to electricity, will receive a 20% stake in the new joint venture, and financial partners will own the remaining shares. At the first stage, investments in construction could amount to 2 billion euros ($2.23 billion).
The unusual structure of the transaction for the provision of electricity in exchange for equity demonstrates Iberdrola's interest in developing a global portfolio of data centers.
The joint venture is planned to be established in the first half of 2025 to operate in the Iberdrola domestic market in Spain and begin construction of 200 MW centers by 2030. In the future, the joint venture will expand its presence in other markets and will allow it to outpace competitors in this market.
For the new enterprise, Iberdrola will provide a plot of land with a connection to the 200 MV power grid and will use pumped storage energy to ensure that there are no interruptions in the operation of the hydroelectric power plant, even if the energy is completely renewable. Later, Iberdrola may decide to build a solar power plant.
Iberdrola already sells electricity to several data centers under Electricity Purchase Agreements (PPA).
According to analysts, the rapid development of artificial intelligence technologies will increase the demand for electricity in data centers by 160% and reach 4% of global electricity consumption by 2030. Accordingly, this business is becoming attractive to renewable energy producers.
In particular, other Spanish companies have also shown interest in building data centers. In early September 2024, Solaria Energia y Medioambiente SA signed an agreement with the Japanese company Datasection Inc. to build a data center with a capacity of up to 200 MV, and the real estate company Merlin Properties Socimi SA in July raised 1 billion euros ($1.1 billion) to expand its data center business.
Iberdrola is a multinational electric power company. The company produces and distributes electricity to consumers and manages a number of renewable energy projects, including solar, wind and hydroelectric power plants. The headquarters is located in Bilbao (Spain).
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